Pantaloons Fashion

and Retail Ltd.

-Group 1

Competitive strategy
Value for money
Convenience - western retail format
into the Indian context
Availability Presence in many cities
Wide range of products in one store
multiple brands

Key drivers for achieving

competitive strategy

Retail location
Vendor relationship
Effective and committed employees
Cost effective operations

Supply chain strategy

Moderate responsiveness
Moderate efficiency
supply
chain
Pantaloons High
and Future
Supply Chains
follow a
supply chain format of moderate responsiveness.
surplus

Consolidation of distribution centers to reduce

warehousing costs.
Increase efficiency of retail space and time by
80% floor ready merchandise.

Moderate to high efficiency using software applications

like;
ERP
Sambandh (Vendor Relationship Management) portal
Warehouse management system (WMS)
Auto Replenishment System (ARS)
Advanced Transportation Management system (TMS)
Put-to-light sortation system (PTL Sortation)
Pick and Pack system
Automatic Print and Apply system (Automatic
Packaging system)
Automatic online conveyor based weigh check
system

Supply chain capabilities

Ability to respond to wide ranges of
quantity demanded
Ability to meet short lead times
Handle a wide variety of products
Handle multiple suppliers (3000 +)
Handle supply uncertainty

Strategic fit

India Factor: The focus is on high efficiency and low

responsiveness during stable demand periods of each part of the
country.

Supply chain drivers

Facility

Warehouse and inventory - CDC

Built in partnership with Hong Kong based Li and Fung
group
Serves Mumbai and western region, top 8 consumption
centres
CDC - Near airport and railway station
420, 000 square feet located at Mihan, Nagpur on 20 acre
plot
48 hours of driving distance from any part of the country
Handle more than 1 lakh pieces per day across different
categories
Consolidate 11 lakh sq ft of warehousing space in various
parts of the country.

Information

WMS in inbound ordering

WMS in outbound order

management

Other software and technology

used

Sambandh (Vendor Relationship Management) portal

launched to increase visibility in operations
Warehouse management system (WMS)
Auto Replenishment System (ARS)
Advanced Transportation Management system (TMS)
Put-to-light sortation system (PTL Sortation)
Pick and Pack system
Automatic Print and Apply system (Automatic Packaging
system)
Automatic online conveyor based weigh check system
RFID Tags
Future group DC

Inventory

(2012 data)

Finished goods inventory at Nagpur

Area allotted 129591 square feet
Bins 97664
Pallets 1052
Current handling 250,000 items
Minimum retailer inventory at each
store depending on store size.

Distributed storage with carrier delivery

rce: http://www.futuregroup.in/pdf/Q2-FY12-Investor-Update.pdf

Framework for network design

decisions

Profits due to technology

Savings in aggregation 18 to 1 DC
Nearest to 8 major demand centres Mumbai and
western region
Nearer to textile manufacturing regions
Savings in logistics cost

Nagpur strategic location

Multi-modal International Cargo Hub and Airport at Nagpur
SEZ
Land prices less than 12% of India average
Regulatory leniency
Tax benefits
Availability of labour and skill

Financials
(detailed calculations in the report)
Potential net profit of out-of-stock reduction
by Automatic Store Replenishment
=180.000for every 500 million of total
sales.
Potential net profit of labour cost reduction
by ASR =Rs. 7 millionfor every Rs. 500
million of total sales.
Potential net profit from WMS Warehouse
labour cost reduction will be Rs. 2 million
for every Rs. 500 million of sales

 Safety stock reduction: Multiplied by

15 to 20% of inventory carrying cost
will save around Rs. 1.2 to Rs. 1.6
million for every Rs 500 million
implementation of
of sales
systems during the
period has
significantly
reduced the total
other expenses as a
percentage of
Revenue.
Most systems were
functional at the

Transportation
amount spent on Power
and Fuel compared to the
previous year has reduced
by around 40%.
(Use of dedicated transport medium
Was changed after 2013 takeover)

also decreased
6670.22 million
which is more than 50%.

Rent has
from 13730.12 million to

(Consolidation
of

distribution centres)

Inventory turnover

Changes for the future

Better Assortment planning and
demand forecasting measures will
aid reduction in inventory days by
another 8 days.
Increase in consumer demand would
be the major driver for inventory
reduction.
Focus on reduction in rent of retail
outlets
Convert footfall to sales

Thank you!!!

Inbound

Inventory /
Distribution
centre

Outbound

3000+
suppliers

Nagpur
MIHAN

1600 trucks

Quality tests
performed at
the
manufacturer
end

Cross-docking

161 retail
outlets

Packaging
done at
manufacturer
end

Warehousing

53 routes

Future group
logistics

Piece meal
distribution

Truck 1

Route 1